Are you a dairy producer whose operation has been directly impacted by the coronavirus pandemic? USDA is implementing Coronavirus Food Assistance Program 2 for agricultural producers who continue to face market disruptions and associated costs because of COVID-19.
The application period for CFAP 2 closed on December 11.
Coronavirus Food Assistance Program 2, or CFAP 2, will provide producers with financial assistance that gives them the ability to absorb some of the increased marketing costs associated with the COVID-19 pandemic. USDA will accept CFAP 2 applications from September 21, 2020 through December 11, 2020. Learn more at farmers.gov/cfap2.
Eligible Dairy Commodities
Cow milk and goat milk are both eligible for CFAP 2.
CFAP 2 payments are available for eligible producers of dairy commodities categorized as either price trigger or sales based. Specifically:
- Price trigger commodities suffered a five percent-or-greater national price decline in a comparison of the average prices for the week of January 13-17, 2020, and July 27-31, 2020. Cow milk is eligible for CFAP 2 as a price trigger commodity.
- Sales-based commodities have payment calculations that use a sales-based approach, where producers of eligible commodities are paid based on five payment gradations associated with their 2019 sales. Goat milk is eligible for CFAP 2 as a sales-based commodity.
CFAP 2 Payments for Cow Milk
Dairy operations applying for CFAP 2 must be in the business of producing and commercially marketing milk at the time of application. Dairy operations that dissolve after enrollment in CFAP 2 are eligible for a prorated payment for the number of days the dairy operation commercially markets milk from September 1, 2020, through December 31, 2020. Dairy operations that dissolve prior to CFAP 2 enrollment are ineligible for CFAP 2 payments.
Payments for cow milk will be equal to the sum of the following:
- The producer’s total actual milk production from April 1, 2020, to August 31, 2020, multiplied by the payment $1.20 per hundredweight; and
- The producer’s estimated milk production from September 1, 2020, to December 31, 2020, based on the daily average production from April 1, 2020, through August 31, 2020, multiplied by 122, multiplied by a payment rate of $1.20 per hundredweight.
CFAP 2 Payments for Goat Milk
Payments for goat milk will be based on the producer’s 2019 sales of eligible commodities in a declining block format using the following payment factors, and will be equal to:
- The amount of the producer’s eligible sales in calendar year 2019, multiplied by
- The payment rate for that range.
|2019 Sales Range||Percent Payment Factor for the Producer’s 2019 Sales
of Eligible Commodities Falling in the Range
|$0 to $49,999||10.6%|
|$50,000 to $99,999||9.9%|
|$100,000 to $499,999||9.7%|
|$500,000 to $999,999||9.0%|
|Sales over $1 million||8.8%|
Payments for goat milk producers who began farming in 2020 and had no sales in 2019 will be based on the producer’s actual 2020 sales as of producer’s application date.
Eligible sales only include sales of raw commodities grown by the producer. The portion of sales derived from adding value to the commodity, such as processing and packaging, and from sales of products purchased for resale, is not included in the payment calculation.
Example: A producer’s 2019 sales of eligible commodities totaled $75,000. The payment is calculated as ($49,999 times 10.6%) plus ($25,001 times 9.9%) equals a total payment of $7,775.
Additional examples and clarifications for CFAP 2 sales commodity calculations for can be found under Sales Commodities on farmers.gov/cfap2/faq and on page 22 of the Cost-Benefit Analysis published under CFAP 2 Resources on farmers.gov/cfap2. We recommend referencing these examples to calculate your estimated CFAP 2 payments for goat milk.
Additional CFAP 2 Information
Farm Service Agency staff at local USDA Service Centers will work with producers to file CFAP 2 applications. Producers interested in one-on-one support with the CFAP 2 application can also call 877-508-8364 to speak directly with a USDA employee ready to offer assistance at our call center.
Visit farmers.gov/cfap2 for additional information on Coronavirus Food Assistance Program 2, other eligible commodities, CFAP 2 eligibility, payment limitations and structure, and how to apply.
Find Your Local Service Center
We are committed to delivering USDA services to America’s farmers and ranchers while taking safety measures in response to the pandemic. USDA offices are currently closed to visitors, but Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Learn more at farmers.gov/coronavirus.
USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to ﬁnd your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.
Visit the Risk Management Agency website to ﬁnd a regional or compliance office or to ﬁnd an insurance agent near you.